Hi again BlooTooner.

Some trustees are seeking to reopen trust deeds to capture PPI. There's much more about this here:

Link Updated 2020: https://www.trust-deed.co.uk/rbs-and-ppi-claims-after-trust-deeds.html

Might your creditors be due more for interest on the debts? We don't really know without access to the figures they used at the end of your trust deed.

Would your trustee go to the trouble of reopening your trust deed after your creditors have been fully repaid already? I REALLY doubt it.

I'd have thought your trustee will forward the funds to you, or authorise your ex creditor to do so.

Thanks for the response TDA.

It was that article that prompted me to make my post. It's clear from the letter that the ex-creditor sent that it was an internal review of PPI compensation that led to further funds being due, rather than my ex-Trustee seeking to have the case re-opened. I'll be phoning both parties tomorrow to try and get some clarity. I just wish creditors would check/acknowledge an individuals current trust deed status, before sending out letters based on out-of-date information.

If one thing I've learned from my DMP and subsequent Trust Deed, experience, is that the picture is never 100% clear from the debtor's perspective. Too many smoke and mirrors, despite the best intentions of sites like this, the Citizens Advice Bureau and others who try to provide clarity. Even 18 months after being formally discharged and with the documentation as evidence, I still have a nagging doubt that all is not finished.

Hi BlooTooner.

I think all of these situations we read about are creditor initiated rather than trustee initiated. Some companies have been ordered by the FCA to review previous PPI claims because it became clear that they'd been handled unfairly the first time around.

They naturally write to a trustee in these instances, even when an individual is known to have been discharged, because they perceive that they're at risk of having to pay out twice if they don't.

It's then up to the trustee if they seek to re-open. Some are, many aren't, but I suspect this may well become a fairly standard practice given that the AIB are doing the same for some discharged bankruptcy cases.

Your situation is a bit different though - your creditors appear to have been fully repaid with some interest already.

Well phoned the trustee this morning, they will be taking a cut of the PPI as commission, for their PPI claims side of things. A whopping 30% +vat. Unfortunately my hands are tied as this latest PPI refund relates to the original complaint raised by the Trustee and the creditor won't redirect the payment unless the trustee confirms in writing that they have no interest in the funds.

Whilst I will still receive a significant amount, it still leaves a bitter taste. If anything it's been a very expensive lesson trying to do the right thing and deal with my previous debt issue.

So the claims company involved first time around is entitled to 30% + VAT BlooTooner?

Yep, the trustee used a claims company to seek out any possible PPI compensation. Circa £9k was within my trustee fees for the use of the claims company. The claims company are now going to get an additional £5500 as a result of this revised compensation.

Unfortunately as I had to sign paperwork at the request of my trustee who instructed this firm to seek out any potential PPI compensation, it looks as if there is nothing I can do about it. The claims company is entitled to 30% + vat on any compensation as a result of the PPI complaints they raised.

To be fair, I think this is what most claims firms charge irrespective of whether people are in trust deeds or not.

It does add up to a huge sum of money though on really big claims like this.

Hi BlooTooner.

I guess the first thing is to hope that you can definitely keep the other percentage (I am not sure if you have been told that), given the current trend of re-opening Trust Deeds.

And to feel fortunate it was not ingathered during your Trust Deed when it may have been likely that they kept more of it?

I know it probably does not feel right. If it were me I would need to find a way to reconcile it in my mind and enjoy anything you do receive.

I also know 30% plus VAT is a kind of standard charge for those Companies who pursue PPI claims on your behalf. It would seem that the work is the same whether result is small or large repayment, so perhaps it would be fairer in PPI claims that there is a cap on the total commission earned?

Anyway, I hope you get the balance soon, and happy spending!

TDA - That's basically what I was told on the phone this morning. I can understand why the advice is to seek out the PPI compensation yourself, however I do find it surprising that Trustees are using claims companies, given that they should be acting in the best interests of the creditor.

Hi Firewalker, I have been told I will be receiving the remainder and I am grateful for that. I suppose my frustration is that I thought that I had finished handing money over in relation to my Trust Deed, especially as the creditors received full payment along with an element of interest.

Hopefully this will be the last of the money to be handed over. At least I can hold my head up high and say that I've paid back every penny (and then some), which was my initial goal.

Hi BlooTooner.

Depending upon where the insolvency firm is based, they might have to use a claims company even if they wanted to do otherwise.

Claims work, outside of Scotland, is a regulated activity. Unless a firm based in England (for example - where a couple of the major trust deed providers are based) is properly authorized it would be unlawful for them to handle claims for their clients.

That's really interesting to know. The insolvency firm I used is based in Scotland, but at least I can understand why they use a claims firm.

I think it's often a case of specialisms as well BlooTooner.

Working for an insolvency practice isn't much preparation for handling claims work to a professional standard.